Markets Post Mixed Results Ahead of US GDP Report

Asian markets closed mostly mixed today following weak Japanese data. Although industrial production rose 1% from December, core inflation and household consumption came in at 0.5% and -3.4% respectively on a yearly basis, thus raising more concerns on the economic outlook. Investors welcomed the news however, as both the BoJ and the government foresee an inflationary push once the oil price drag eventually terminates. Meanwhile in the region, speculation that the RBA will decrease its main rate below 2.5% is pulling the Australian currency further down against the Dollar. The Aussie is currently trading at $0.776.

In Europe, equity markets responded positively as talks between Syriza party leaders and European creditors got under way, but, turned sour once the Russian Central Bank cut its interest key rate by 2%, crushing the Ruble.

US Markets

This Friday investors will likely turn to Q4 GDP numbers to assess the quality of the US growth as it stands solitary in the face of the global slowdown. The session will also see the release of Personal Consumption Expenditures and Consumer Sentiment Index: expect some volatility.